The efficiency of German public theaters: a stochastic frontier analysis approach

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Standard

The efficiency of German public theaters: a stochastic frontier analysis approach. / Last, Anne-Kathrin; Wetzel, Heike.
in: Journal of Cultural Economics, Jahrgang 34, Nr. 2, 05.2010, S. 89-110.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Harvard

APA

Vancouver

Bibtex

@article{76c97cdebc28468cb2a8cd01b2fa2b65,
title = "The efficiency of German public theaters: a stochastic frontier analysis approach",
abstract = "In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992-2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models' efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.",
keywords = "Economics, Cultural economics, Efficiency, Input distance function, Public theaters, Stochastic frontier analysis",
author = "Anne-Kathrin Last and Heike Wetzel",
year = "2010",
month = may,
doi = "10.1007/s10824-009-9111-5",
language = "English",
volume = "34",
pages = "89--110",
journal = "Journal of Cultural Economics",
issn = "0885-2545",
publisher = "Springer New York",
number = "2",

}

RIS

TY - JOUR

T1 - The efficiency of German public theaters: a stochastic frontier analysis approach

AU - Last, Anne-Kathrin

AU - Wetzel, Heike

PY - 2010/5

Y1 - 2010/5

N2 - In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992-2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models' efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.

AB - In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992-2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models' efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.

KW - Economics

KW - Cultural economics

KW - Efficiency

KW - Input distance function

KW - Public theaters

KW - Stochastic frontier analysis

UR - http://www.scopus.com/inward/record.url?scp=77951974187&partnerID=8YFLogxK

U2 - 10.1007/s10824-009-9111-5

DO - 10.1007/s10824-009-9111-5

M3 - Journal articles

VL - 34

SP - 89

EP - 110

JO - Journal of Cultural Economics

JF - Journal of Cultural Economics

SN - 0885-2545

IS - 2

ER -

DOI

Zuletzt angesehen

Publikationen

  1. Extern berichten:
  2. Erratum zu
  3. Die Rechtschreibung beim Textschreiben
  4. Average wage, qualification of the workforce and export performance in German enterprises: evidence from KombiFiD data
  5. Governance approaches to address scale issues in biodiversity management – current situation and ways forward
  6. Akteure, Berater und Beobachter, oder: wie kommt Strategie in die Politik?
  7. Angels of Efficiency
  8. Best-Practice-Beispiel: Wie kann Mentoring in die neue Studienorganisation implementiert werden?
  9. From negative to positive sustainability performance measurement and assessment? A qualitative inquiry drawing on framing effects theory
  10. Climate and animal distribution
  11. Elektroaltgeräte
  12. Decentralized utilization of wasted organic material in urban areas
  13. Ready for new business models?
  14. Language, Literature and the Environment
  15. Accounting for Information Infrastructure as Medium for Organisational Change
  16. An empirical survey on biobanking of human genetic material and data in six EU countries
  17. Theodor Fontane, das Fremde und die Juden
  18. Readings in applied organizational behavior from the Lüneburg Symposium
  19. What Do They Reflect on?—A Mixed-Methods Analysis of Physical Education Preservice Teachers’ Written Reflections After a Long-Term Internship
  20. Guest editorial
  21. Transdisziplinäre Nähe oder soziologische Distanz?
  22. Sex differences in stretch-induced hypertrophy, maximal strength and flexibility gains
  23. "Sustainable University"
  24. The COVID-19 pandemic as an disruptive event in school health promotion. Survey results from Germany
  25. Uncovering Divergence
  26. Democratic capitalism vs. binary economics